Founder: DeAnne Stidham
Bare Naked Scam rating: 1 Thumb Down
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Is LuLaRoe a Scam?
So you’ve been introduced to LuLaRoe by a girlfriend of yours, or you’ve been tasked by your wife to do some research on this company, or maybe you have already signed up as a LuLaRoe Fashion Consultant, but you are still in the queue for on-boarding and you are waiting for your inventory to arrive.
You’ve come to the right place because I am going to share with you everything you need to know in order to make an informed decision (as well as to justify your decision if you have already signed up).
There’s a lot of buzz about this company, and I’ve heard many good stories as well as bad experiences from people who’ve been with the company.
LulaRoe was founded by DeAnne Stidham back in 2012, and this is the story of how it all started:
There is a good reason why this company is well received by its community, and it is simply because LuLaRoe had a purpose with a good cause.
On top of just selling clothing with unique and stylish print, LuLaRoe is selling a dream, a dream to empower women to be financially free.
The big questions are, does LuLaRoe actually help individuals succeed, are these all but hype, does this business opportunity really work?
Before we get into the specifics, let me first say that LuLaRoe is not a scam. It is a legitimate Multi-Level Marketing (MLM) Company in the fashion industry, which sells clothing with unique and stylish print (as you can see below).
LuLaRoe is one of its kind, because I can hardly see any successful Multi-Level Marketing companies in the fashion industry.
Now, although LuLaRoe is not a scam, it doesn’t mean that you are the right person for the business.
You must know that there is a high rate of failure in this business and I will share the main reasons with you below.
Let’s First Understand How LuLaRoe Works?
If you are interested in getting your hands on a set of LuLaRoe’s clothing, you have to get it through a LuLaRoe’s distributor a.k.a. Independent Fashion Consultant.
At current, there are two ways to buy LuLaRoe’s products from an Independent Fashion Consultant, and unfortunately, LuLaRoe is only available to U.S. residents.
First, you can share a Facebook Link to the online popup shop which the Independent Consultant has created. Here’s how it works:
Second, you can organize a physical LuLaRoe popup party at your house by contacting a Fashion Consultant near you.
Your Fashion Consultant will bring her inventory of LuLaRoe clothing line to your house for your friends and family to shop.
What better ways to shop than at the comfort of your house and with the ones you love, right?
What you have to know before you join LuLaRoe as a Fashion Consultant?
Now, if you are interested in the position of an Independent Fashion Consultant, then you have to know this.
What is required for a Fashion Consultant?
Let’s get behind the scene in the role of a Fashion Consultant.
The most important task for a Fashion Consultant is of course to get new customers, but other than that, when a customer engages you and request for a popup party, here’s what you need to do.
- Load the inventory to your vehicle
- Drive them to the location
- Unload the inventory and set it up
- Update your inventory when there is a sale
- Pack up everything once popup party is over
- Unload your inventory while you are home
Imagine doing the same steps at least 3 times a week. It is physically demanding if you really want success in this opportunity.
The number of hours and effort you put in will reflect your income. However, it doesn’t mean that working hard will guarantee your success.
High Cost of Entry and Maintenance
So how do you have a huge inventory to setup a popup party when requested upon?
There is a start up fee of $5,300 which includes 300 pieces of LuLaRoe clothing (you have no control over the design), and you have to purchase 33 pieces of clothing each month in order to remain as an active Fashion Consultant.
In my personal opinion, I feel that the cost of starting up this business is too expensive, and the people who needed this business opportunity do not have $5k to begin with.
A Huge Space for Your Inventory
As your business grows, you would want to buy more inventory and stock up with the latest and trendiest clothing line.
You must prepare a space to store your ever growing inventory.
You’ll probably also want to reserve a space for taking nice photos of your inventory.
Long waiting time to be a Consultant
After you’ve submitted your application, you’ll have to wait between 6 to 10 weeks before you are approved as a Fashion Consultant.
Due to a huge influx of application, there is a long queue list of consultants waiting to be approved. 6 to 10 weeks is a guide to manage new consultants expectation.
6 to 10 weeks is a long time, and it will depend on your sponsor to keep you hyped up and ready to go, when the time comes.
Everyone Raved about LuLaRoe until…
Everyone raved about this company when it first started, but as it grew too quickly, and things weren’t put under control, everything starts to falter.
Upon reviewing many recent customer reviews, the feeling that I get is that the customers did love Lularoe, but because the company has grown too big, too fast, that the customer service, the support standard, and the product quality took a plunge.
Many people complained about the poor quality of the products and how it has torn apart wearing just once.
Many new Fashion Consultants also complained that they are facing a stiff competition from other established Consultants in their area.
Here’s some of the reviews which I thought you should know:
While the LuLaRoe management is working on solving the many problems due to over-expansion, they do cause a lot of tension with their existing consultants:
Why more than 90% of the Independent Fashion Consultants Fail?
Let us analyze the information above.
An average income of an eligible Independent Consultant is $176.55 per month ($2,118.54 / 12 months).
And, those that actually made a sustainable income ($3k per month and above) with LuLaRoe are those with the rank of “Trainer” and above, which consist of only 5.58% of the entire LuLaRoe’s consultants.
Here are several reasons that cause a Fashion Consultant to fail:
1. Wrong Expectation
If you are thinking that the products will sell for itself, or you are thinking that you are going to make a lot of money by just posting your inventory on Facebook, stop!
Let me bring you back to reality.
I know as an entrepreneur that it is easy to drift away with all the marshmallow dreams.
Though some of the LuLaRoe clothing lines are pretty that they do “sell themselves”, some designs just doesn’t sell, no matter how hard you try. Moreover, you have no control over the clothing you are getting from the initial 300 pieces of clothing.
On top of having nice looking products, you have to reach out to the right audience, and you have to feel excited about the products so that you can make people feel excited about it.
And, as I’ve mentioned above, the process of setting up a popup party is physically demanding and time consuming.
People get discouraged easily when the going gets tough.
If you are expecting this to be some “Setup and be done with” kind of opportunity, then LuLaRoe is definitely not for you.
2. Lack of Leads and Stiff Competition
Because of the way LuLaRoe is set up, consultants can only grow locally.
As you’ve seen in the reviews above, new consultants are complaining that they are facing stiff competition because there are too many consultants in the same area.
You might say that setting up an online popup store will allow you to reach people out of your region, but you have to remember that there are many consultants spread through the U.S. as well.
Just take a look at the number of consultants spread across the U.S.:
You must know that this is not a business that generates passive income (unless you build a team), which means that need to have a constant stream of new customers every month.
If you really want to succeed in this business, you have to find a way to acquire a never ending stream of prospective customers.
3. Your Team determines Your Success
Because this is a Multi-Level Marketing Business, your success and failure depend largely on the team that you join.
If you join a team who do not put your interest ahead of theirs, or your team is lousy in communication, you will most likely fail.
I’ve seen team leaders who do not teach their Fashion Consultants how to handle customer complaints, who can care less about the growth of their Fashion Consultants, or who couldn’t understand the importance of good communication within the team. What do you think this leads to? – An eventual failure.
It is so important that you join a team that cares about your success, and who is willing to groom you into a successful Fashion Consultant.
The Compensation Plan
Now that you know all the ins and outs of the LuLaRoe business, let’s understand the compensation plan.
If you really want to be successful in this business, you have to build a team.
Just relying on retail sales will not get you anywhere, and worst of all, it is hard maintaining the business operations.
What if you want to quit LuLaRoe?
On a positive note, it is not like you will lose your entire investment if you decide to quit.
And, you will not be left with a bunch of products you are not interested to sell.
My Sincere Advice to You
LuLaRoe is for people who are driven and have the sheer determination to succeed.
If you are those people who expect to achieve great results without putting in the effort, you can forget about succeeding in this business or whatever business opportunity that comes in your way.
Although this is a good business opportunity, I feel that the cost of starting is too high, and the chance of success lies upon the team that you join.
If you are really interested in the business opportunity, you really need to budget your spending at the initial stage, and make sure that you do due diligence on the team that you are joining.
So, at this point, you’ll know if the LuLaRoe business opportunity is suitable for you.
What if this business opportunity is not suitable for you? What’s next?
If you’ve read some of my reviews before, you’ll know that I was a part of many MLM companies and didn’t achieve any success until I found this program.
This program has turned me from a nobody to a somebody online, best of all, you do not need to invest a lot of money to make it work, and the income that you generate is passive income.
Wishing you all the best in whatever decision you’ve made, and thank you for reading this review!
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